Tesla CEO Elon Musk revealed on Thursday his controversial $43 billion proposal to the U.S. Securities and Exchange Commission (SEC) to buy Twitter in an updated 13D form, A few days ago he turned down a seat on the company’s board.
In his most recent SEC filing, Musk offered $54.20 per share in cash, valuing the company at just over $43 billion.
Musk, 50, who has a net worth of about $260 billion, claims he wants to unleash Twitter’s “extraordinary potential” and is the man to try to transform his public image due to his lack of confidence in the company’s management. – Conversion of a trading company into a private company.
Acquisitions are not easy…
Given that Musk has made a premium offer and Twitter is currently trading at about $46 at press time, he will need to attract enough shareholders to move forward with the official.
“It turns into a hostile takeover offer that’s going to cost a lot of cash,” Neil Campling, director of TMT research at Mirabaud Equity Research, said in a recent interview with Bloomberg. “He’s going to have to sell quite a lot of Tesla stock to finance it, or With huge loans as collateral.”
According to Adam Crisaffulli of Vital Knowledge, Musk’s offer of $54.20 a share was “too low,” suggesting Twitter’s stock price is $70 less than it was a year ago.
“My offer is my best and final offer, and if it is not accepted, I will need to reconsider my position as a shareholder,” Musk said.
In his most recent SEC filing, Musk said that “the company will neither thrive nor serve this societal need in its current form.” Over the weekend, he informed Twitter’s board of directors that he believed The company should be privatized.
“If the deal doesn’t go through, I will need to reconsider my position as a shareholder given my lack of confidence in management or that I can drive the necessary changes in the public markets,” Musk said in his report. letter to the company.
The world’s richest man and Twitter’s largest individual shareholder, worth $3.35 billion, has always had a love-hate relationship with Twitter.
He has recently come under fire from investors for making “false and misleading” statements, mocking public officials including U.S. President Joe Biden and peddling unsubstantiated claims about the COVID-19 pandemic.
In multiple tweets, Musk emphasized that Twitter cannot truly allow and provide “freedom of speech”:
What does Twitter have to say?
Earlier this week, Twitter CEO Parag Agrawal revealed that Musk would not be joining the board, despite their previous announcement on April 9 that he would. The board offered him a seat with the understanding that, as a trustee of the company, he would act in the best interests of the company and its shareholders.
However, Musk turned down the seat.
In response to Musk’s proposal, the company noted:
“Twitter, Inc confirmed today that it has received an unsolicited non-binding proposal from Elon Musk to acquire all outstanding shares of the company’s common stock for $54.20 per share in cash.”
Twitter’s board will review the proposal to determine a course of action that is in the best interests of the company and its shareholders, the company said.
Musk, known as the father of DOGE, is also known to have a positive impact on Dogecoin through his bids.
The positive price action is supported by the fact that Musk’s personal portfolio has exposure to Dogecoin in addition to Bitcoin and Ethereum.
On CoinGecko, DOGE has broken out of its 24-hour range, up 6% to $0.144824 at press time.
While Musk’s Twitter bid is expected to impact the Web3 space, Tron founder Justin Sun also offered Twitter a $60 per share offer.
He further extended his support to Musk, adding that he would like to see the platform become “decentralized, non-US-centric, crypto-native, and Web3-friendly.”
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